The ‘Kardashian Kard,’ a prepaid debit card targeted to young adults, has recently dropped out of the market after the Connecticut Attorney General spoke out against its many hidden fees.
The Kardashian sisters, well-known reality television stars, were associated with the card and had their likeness printed on it before the widespread criticism. Connecticut Attorney General Richard Blumenthal pointed out that the card had annual fees totalling nearly $100, monthly fees that kicked in after the first year, ATM fees, bill pay fees, loading fees, card cancellation fees and even fees for speaking with the card’s customer service operators, according to Consumer Reports.
Blumenthal added that “the larger lesson – common to other prepaid debit cards – is that targeting young adults with predatory card terms and conditions may bear close scrutiny and caution.”
In addition to young adults, consumers with bad credit history sometimes obtain prepaid debit cards in the hope that using it will build good credit. According to Consumer Reports, relying on prepaid cards to build credit may be a mistake, and it may be a financially wiser decision to use the debit card associated with a regular bank account instead.